Corporatism: The Real World of Corporate Favoritism – Obama’s Favored General Electric Paid 2.3% Tax Rate on $81 Billion of Profits Over Past Ten Years
Oil and gas companies are bashed for their special and not so special tax deductions, meanwhile, one of President “99%” Obama’s favorite corporate has very skilled tax accountants and tax attorneys to maneuver through the incomprehensible labyrinth of the American Tax Code.
TaxProfBlog (14, 782,742 visits since 2004) presents Citizens for Tax Justice Press Release 27 February 2012: General Electric’s annual SEC 10-K filing for 2011 (filed February 24, 2012) reveals that the company paid at most 2.3% of its $81.2 billion in U.S. pretax profits in federal income taxes over the last 10 years.
For more on General Electric’s Tax Status see
- Huffington Post, GE Breaks Law, Avoids Taxes. Gets Billions From Gov’t, Avoids Taxes. Gets White House Post — Ah, You Know The Rest
- Huffington Post, General Electric Tax Rate 2.3 Percent Over Decade, Report Finds
- Reuters, GE Had 11.3% Effective Tax Rate in 2011: GE, the largest U.S. conglomerate, reported about $1.03 billion in taxes on $9.16 billion in pretax profits last year, according to the Center for Tax Justice report.
- Wall Street Journal, Spat Between Tax Group, GE Highlights Hurdles to Tax Overhaul
Bruce Bartlett on Corporate Tax Rate and Tax on Dividends, international comparison and states (NYTimes Economix 20 December 2011):
“Those advocating a cut in the corporate tax rate today generally ignore the tax on dividends, as well as many other provisions of United States and foreign tax law that may reduce the effective tax rate well below the statutory rate.
A recent study found that only 25 percent of the largest American corporations pay anywhere close to the statutory corporate tax rate of 35 percent on their earnings, while 40 percent pay less than half that rate.
Indeed, General Electric, the nation’s largest corporation, paid no federal corporate taxes in the United States in 2010, according to a report in The New York Times.”
See also TaxProfblog: Mitt Romney’s True Tax Rate: 44.75%: “In other words, after the combined top tax rates hit $100 of corporate income, $55.25 remains for the investor.”
Tax Foundation: U.S. Effective Corporate Tax Rate Is Among Highest in World (TaxProfblog 13 September 2011)